Dynamic Effects Among Movie Ratings, Movie Revenues, and Viewer Satisfaction

Journal of Marketing, Vol. 74 (January 2010), 108-121

15 Pages Posted: 21 Nov 2015 Last revised: 19 Feb 2016

See all articles by Sangkil Moon

Sangkil Moon

North Carolina State University - College of Management

Paul Bergey

Independent

Dawn Iacobucci

Vanderbilt University - Marketing; Vanderbilt University - Marketing

Date Written: 2010

Abstract

This research investigates how movie ratings from professional critics, amateur communities, and viewers themselves influence key movie performance measures (i.e., movie revenues and new movie ratings). Using movie level data, the authors find that high early movie revenues enhance subsequent movie ratings. They also find that high advertising spending on movies supported by high ratings maximizes the movie’s revenues. Furthermore, they empirically show that sequel movies tend to reap more revenues but receive lower ratings than originals. Using individual viewer–level data, this research highlights how viewers’ own viewing and rating histories and movie communities’ collective opinions explain viewer satisfaction. The authors find that various aspects of these ratings explain viewers’ new movie ratings as a measure of viewer satisfaction, after controlling for movie characteristics. Furthermore, they find that viewers’ movie experiences can cause them to become more critical in ratings over time. Finally, they find a U-shaped relationship between viewers’ genre preferences and genre-specific movie ratings for heavy viewers.

Keywords: movie ratings, professional critics, amateur communities, movie revenues, consumer satisfaction

Suggested Citation

Moon, Sangkil and Bergey, Paul and Iacobucci, Dawn and Iacobucci, Dawn, Dynamic Effects Among Movie Ratings, Movie Revenues, and Viewer Satisfaction (2010). Journal of Marketing, Vol. 74 (January 2010), 108-121, Available at SSRN: https://ssrn.com/abstract=2693333

Sangkil Moon

North Carolina State University - College of Management ( email )

College of Management
Raleigh, NC 27695-7229
United States

HOME PAGE: http://www4.ncsu.edu/unity/users/s/smoon2/www/

Paul Bergey

Independent ( email )

Dawn Iacobucci (Contact Author)

Vanderbilt University - Marketing ( email )

Nashville, TN 37203
United States

Vanderbilt University - Marketing ( email )

Nashville, TN 37203
United States

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